Airtasker (ASX:ART) Announces US$5.0 Million Partnership Expansion with iHeartMedia
In a recent ASX announcement, Airtasker (ASX:ART) has detailed a significant expansion of its partnership with America’s leading audio media company, iHeartMedia (NASDAQ:IHRT). The company has secured an additional US$5.0 million (A$7.6 million) in media and advertising resources to accelerate its Airtasker US growth objectives. This expanded Airtasker iHeartMedia partnership builds on the momentum from the initial collaboration launched in August 2024.
The arrangement has already enabled Airtasker to achieve an A$7.5 million gross marketplace volume (GMV) annualised run rate in the United States by June 2025. This development positions the company to leverage iHeartMedia’s massive reach of 276 million monthly listeners across 860 broadcast and streaming stations in 160 US cities.
What are the terms of the Airtasker deal with iHeartMedia?
The expanded agreement provides Airtasker USA with substantial media assets through a multi-year arrangement structured as a 3-year issuer-convertible note with a 5.0% coupon. This capital-efficient approach allows Airtasker to access premium media inventory whilst preserving operational cash for business expansion.
Furthermore, iHeartMedia’s platform offers Airtasker access to the #1 podcast network globally, according to Podtrac, with over 378 million monthly downloads. The partnership also enables promotional opportunities at major cultural events, including the iHeartRadio Music Awards and iHeartRadio Music Festival, creating authentic brand exposure.
iHeartMedia’s broadcast radio assets alone have more consumer reach in the US than any other media outlet, reaching 9 out of 10 Americans every month.
David Ellis, Executive Vice President of Ventures at iHeartMedia, commented: “Airtasker’s strength in Australia shows how a fundamentally better marketplace can reshape consumer behaviour. As the company accelerates in the US, we see a clear opportunity to redefine expectations and win the category through innovation and a strong go-to-market plan.”
How will Airtasker fund its US expansion?
The financial structure of the Airtasker iHeartMedia partnership is designed for flexibility, with iHeartMedia providing US$5.0 million in advertising inventory over 2 years in exchange for the convertible note.
Key Financial Terms:
| Structure Component | Details |
|---|---|
| Media Value | US$5.0 million (A$7.6 million) over 2 years |
| Note Term | 3-year issuer-convertible note |
| Coupon Rate | 5.0% per annum |
| Conversion Option | 20% discount to an agreed valuation |
| Flexibility | Airtasker USA holds conversion options |
At maturity, Airtasker USA holds the option to repay the note in cash or convert it into equity at a 20% discount to an agreed valuation. The company also maintains the option to convert the note into equity at a 20% discount to the offer price of a qualifying equity financing event in Airtasker USA.
This structure enables Airtasker to access substantial media resources without immediate cash outlay, supporting its capital allocation while maintaining operational flexibility. Under certain circumstances, including a change of control of Airtasker USA, iHeartMedia may convert the note into Airtasker USA shares.
Why is iHeartMedia investing in Airtasker?
The United States represents the world’s largest services marketplace, offering substantial growth potential. Since launching the initial partnership in August 2024, the company has scaled from a low base to achieve an A$7.5 million GMV annualised run rate by June 2025, demonstrating the effectiveness of the collaboration.
CEO Tim Fung emphasised the partnership’s impact in this investor update: “We are incredibly pleased to announce today an expansion of our partnership with iHeartMedia to scale Airtasker in the US. Since launching our partnership last year, we’ve already seen the power of the iHeartMedia platform to accelerate our growth, helping us to scale from close to a standing start to hitting a A$7.5 million GMV annualised run rate in June this year.”
Furthermore, the expansion enables Airtasker to tap into iHeartMedia’s extensive audio ecosystem. This provides over four times the ad-enabled reach of the largest digital-only audio service.
In a show of confidence, iHeartMedia has also cornerstoned an A$10.0 million equity capital placement into Airtasker Limited. This equity investment signals strong belief in Airtasker’s market opportunity and execution capabilities.
Network Effects and Future Outlook
The growth of a marketplace like Airtasker is driven by network effects, where the platform becomes more valuable as more users join. More service providers (Taskers) attract more customers, which in turn attracts more Taskers, creating a self-reinforcing growth cycle. As this cycle gains momentum, the platform can experience accelerated growth with improving unit economics.
The Airtasker iHeartMedia partnership is a key component of Airtasker’s global media strategy, which includes relationships with TelevisaUnivision and Sinclair Broadcast Group in the US, and Channel 4 in the UK.
For investors monitoring this ASX ART announcement, several milestones will indicate the partnership’s effectiveness:
- Investor Day (26 November 2025): Featuring executives from iHeartMedia and other key partners.
- Media Deployment: The US$5.0 million in media inventory will be deployed over a 2-year timeline.
- Performance Metrics: Key indicators to watch include US market GMV growth, customer acquisition costs, and user retention.
The upcoming Investor Day will feature sessions with David Ellis, Executive Vice President of Ventures at iHeartMedia, providing further insight into the collaboration’s progress and future plans.
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